Although Tesla appears to be wildly overvalued compared to rival automakers, its shareholders are betting that they can sell their holdings to a greater fool in the near future, and Elon Musk is eagerly indulging their speculative exuberance. None of it bodes well for company’s workers, suppliers, and other customers.
BERKELEY – From the standpoint of America and the world, Tesla is a historically important technology-generating enterprise – the tip of the spear in the transition away from internal-combustion-engine vehicles. From the standpoint of long-term shareholders, it has the potential to be a sustainable profit-making enterprise. From the standpoint of its suppliers, employees, and customers, it is a source of income and production. And from the standpoint of Wall Street speculators, it is a bouncing ball in a roulette wheel: a tech-bubble casino play.
BERKELEY – From the standpoint of America and the world, Tesla is a historically important technology-generating enterprise – the tip of the spear in the transition away from internal-combustion-engine vehicles. From the standpoint of long-term shareholders, it has the potential to be a sustainable profit-making enterprise. From the standpoint of its suppliers, employees, and customers, it is a source of income and production. And from the standpoint of Wall Street speculators, it is a bouncing ball in a roulette wheel: a tech-bubble casino play.